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Question 1 (50 marks) 

Cain operates a well-known fast-food stall in a tourist area in Fanling. He sells fried foods such as chicken wings, cutlet fish fillets and French fries. He normally buys food supplies from a frozen meat dealer, Daniel. Recently Daniel was diagnosed with a serious lung disease and had to close down his business. Cain had to look for alternative supplies of frozen meat. Daniel introduced his friend Edward to Cain. Edward is also a frozen meat dealer. 

Cain intended to buy frozen fish fillets from Edward but wanted to obtain more information about the supplies before placing any orders. This was important to Cain’s business since he had just devised a new recipe for high quality cutlet fish fillets, which he believed would attract a large number of new customers. Edward confirmed with Cain that the frozen fish fillets were from an expensive fish called rainbow trout from Iceland and was suitable for the new recipe. Based on the information from Edward, Cain entered into a contract with him for the purchase of a substantial amount of frozen fillets. Due to oversight, the kind of fish and country of origin were not specified as terms in the contract. Later when Cain received the first lot of fish fillets, he discovered that they were taken from a kind of low-priced fish from a small island in the South Pacific region. Cain wanted to cancel the contract and return the fillets. He intended to get back the money paid and claim compensation.

Cain also needed to install an additional commercial deep-frying pot. He read through the catalogue of a kitchen equipment company (‘the Company’) and chose a particular model of deepfrying pot. Seeing that the pot was not of urgent need, Cain wrote a letter of offer dated 27 February 2020 to the Company to buy the frying pot. Upon receipt of the letter of offer, the Company sent a letter on 6 March by post to Cain stating ‘All terms stated in your letter of 27 February agreed; shipment of one deep-frying pot (model no. XXXX) to be arranged 10 LAW B868 Corporate Law tomorrow.’ However, before the letter dated 6 March reached Cain, he discovered another shop that sold the same pot at a much cheaper price. Cain wrote to the Company on 9 March to revoke his offer. Due to a mistake of the local post office, the letter from the Company dated 6 March never reached Cain.